FX.co ★ European Stocks Edge Higher

European stocks experienced a modest uptick on Tuesday, reflected in the nearly 0.2% gains for both the STOXX 50 and the STOXX 600. This movement followed a rather subdued trading day on Monday as investors exercised caution in anticipation of the Federal Reserve's upcoming monetary policy decision, slated for tomorrow. Market dynamics were also influenced by comments from US President Trump, who announced that Nvidia would be permitted to ship its H200 AI chips to "approved customers" in China. Defense stocks saw notable increases, with Hensoldt climbing 4.4%, Rheinmetall up by 3.4%, BAE Systems advancing 2.4%, Leonardo rising 2%, and Thales gaining 1.7%. This surge followed a report from Bloomberg indicating that German lawmakers are expected to green-light 29 military procurement contracts, collectively valued at an unprecedented €52 billion, in the coming week. Additionally, renewable energy stocks showed strength, with Orsted rising 2.8% after a US federal judge ruled against President Trump's proposed ban on wind energy, declaring it illegal. Conversely, Thyssenkrupp faced a sharp decline of over 13%, marking the steepest drop within the STOXX 600, after the company projected a loss of up to €800 million for the year 2026.